Roche Chemo Drug Approved in China for Gastric Cancer

Roche (RHHBY.PK) announced that Xeloda, an oral chemotherapy drug, was granted SFDA approval for an additional indication: gastric cancer. Xeloda, which is inactive in pill form, becomes active when it comes into contact with a naturally occurring protein called thymidine phosphorylase [TP]. TP transforms the ingredients into 5-FU, a widely used chemotherapy. Some tumors contain high lives of TP – higher than normal tissue – which causes a concentration of the cell-killing effect in the tumor.

Xeloda is also used for metastatic breast cancer and metastatic colorectal cancer. Overall in its clinical tests, Xeloda has exhibited lower side effects and greater efficacy than IV chemotherapies. It is also easier to administer.

Roche manufactures the drug in China in its China subsidiary, Shanghai Roche Pharmaceutical Co. Ltd, a joint venture with Sunve Pharmaceuticals in Shanghai. The JV was begun in 1994, though the current manufacturing site has been producing drugs only since 2006. The products of the JV are marketed in China and worldwide.

Gastric cancer causes 300,000 deaths annually in China. If discovered early enough, surgery is usually the option, though an early diagnosis occurs in less than 10% of the patient population. 90% of those who have surgery are still alive five years after the operation. 400,000 people in China are diagnosed with gastric cancer each year.

Roche, which is based in Switzerland, owns 56% of Genentech (DNA) and markets Genetech-discovered drugs outside the US. Roche has offered to buy the remainder of Genetech for $89 per share, but Genetech rejected the offer as inadequate. Genetech is currently trading for $98 per share, well above the Roche offer.

Disclosure: none.